The Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, on Wednesday revealed how he rejected an outrageous contract variation of N532 billion from the original sum of N90 billion for the 2nd runway of Nnamdi Azikiwe International Airport, Abuja.
Keyamo made the disclosure when he appeared before the Joint Senate and House of Representatives Committee on Aviation, saying the ministry has since revoked the contract to pave the way for fresh bidding.
He said, “After the N3.4 billion post-contract consultancy fee was paid to the contractor handling the project in May 2023, N90 billion was later paid in the same year for the whole contract, out of which N30 billion was released.
“The contractor, after receiving the N30 billion and joining the Federal Capital Territory Administration to compensate some settlers on the affected land, left the site.
“All efforts made thereafter to get the contractor back to the site proved abortive on the grounds of unacceptable contract variation being demanded. The contractor in question is demanding a contract variation of N532 billion from the original sum of N90 billion the contract was awarded for.
“To us in the ministry, the said variation is nothing but fraud, leaving us with no option than to cancel the contract and call for fresh bids.”
Members of the committee asked the minister why the N36 billion owed to workers of the defunct Nigeria Airways was not reflected in the Ministry’s 2025 budget for required payment.
The minister in his response said payment for the N36 billion has been shifted to the Ministry of Finance since the money is not meant for capital projects.
“The affected pensioners would soon get their dues from the Ministry of Finance and not from the Ministry of Aviation and Aerospace Development. I met with leaders of the joint unions on this in November last year, and they agreed to an arrangement put on the ground”, he said.
He, however, disagreed with suggestions made by some members of the committee that the establishment of Aerospace University across the six geo-political zones should be discontinued since there is one in Zaira, Kaduna State, already.
According to him, as the Nigeria College of Aviation Technology, NCAT, was established in 1964, so also was the Nigeria Law School established in Lagos.
“While the Nigeria Law School has been decentralised, the Aviation College in Zaria has not properly followed suit, which the Aerospace Universities are aimed at.”
He thereafter presented the 2025 budgetary proposal of the ministry to the committee, which, according to him, is N71.13 billion, out of which N69.2 billion is earmarked for capital projects, N1.147 billion for personnel cost, and N745.7 million for overhead.
However, the joint committee, through its chairman, Senator Abdulfatai Buhari (APC Oyo North), told the minister the budget proposal would be given the needed approval after submission of full details on the state of 124 projects being executed by the ministry.
“Historical background and current status of all the ongoing projects being executed by the ministry are needed as requested by this committee, at the latest by next week, for approval of the presented budget proposals,” he said.
